New First Home Buyer Scheme Opens Door to Home Ownership for Thousands

 

New First Home Buyer Scheme Opens Door to Home Ownership for Thousands

An interview with mortgage broker Reggie Hart at Thunderbolt Lending

On 1 October 2025, the federal government officially launched its expanded First Home Buyer Guarantee scheme, allowing eligible Australians to purchase a property with just a 5 per cent deposit—without the burden of lenders’ mortgage insurance. The scheme, brought forward by three months from its original start date, is a cornerstone of Labor’s housing policy and aims to make home ownership more accessible to a broader segment of the population.

To understand the practical implications of the scheme, I spoke with Reggie Hart, a seasoned mortgage broker at Thunderbolt Lending, who has already begun submitting applications on behalf of clients eager to take advantage of the new opportunity.

What the Scheme Offers

“The scheme allows first home buyers to purchase a property with only a 5 per cent deposit,” Hart explained. “The government guarantees the remaining deposit, which means buyers avoid paying lenders’ mortgage insurance—a cost that can add tens of thousands of dollars to the upfront expense of buying a home.”

Previously, the scheme was limited by income caps and lower property price thresholds, which excluded many prospective buyers in metropolitan areas. As of today, those restrictions have been lifted. “Now, even a couple earning $400,000 combined can apply,” Hart said. “And the property price caps have increased significantly—up to $1.5 million in Sydney, $950,000 in Melbourne, and $1 million in Brisbane and Canberra.”

This expansion is expected to issue an additional 20,000 guarantees in its first year, according to Treasury modelling, potentially saving participants tens of thousands in rent and accelerating their path to home ownership.

Reggie Hart: A Broker with a Planner’s Perspective

Reggie Hart brings a unique perspective to her role. “I used to be a financial planner,” she shared. “So I understand the broader financial picture my clients are working with. Now, as a mortgage broker, I focus on finding tailored lending solutions, educating clients about debt structuring, and knowing when to refer them back to their planner for more comprehensive advice.”

Hart’s approach is deeply personal. “Every client is a puzzle to solve,” she said. “I want to help people get into their homes and build life-changing wealth. But I also advise when not to proceed—if the debt is too much, or the stress too high, it’s not worth it.”

A Case Study: The Nurse and the Tradie

Hart described a couple she’s currently assisting—a nurse and a tradie in Sydney, earning a combined income of around $200,000. “They’ve saved their 5 per cent deposit and a bit more,” she said. “We submitted their application last night so it would be at the top of the pile when lenders opened their inboxes this morning.”

Finding the right lender is crucial. “Not all banks participate in the scheme,” Hart noted. “Macquarie and ING, for example, don’t. And we had to find a lender that not only participates but also considers the nurse’s overtime and casual shifts favourably.”

The couple’s situation is typical of many first home buyers—earning a decent income but struggling to save a large deposit while paying rent. “With the median house price in Sydney sitting between $1.5 and $1.6 million, saving 20 per cent is nearly impossible for most,” Hart said. “This scheme allows them to buy years earlier.”

Unintended Consequences and Market Pressures

While the scheme offers clear benefits, Hart is candid about its limitations. “It’s pushed prices up,” she said. “Downsizers and investors are now competing in the same market as first-time buyers. A property that was $1.3 million is now $1.4 million. So yes, you save on mortgage insurance, but you might end up paying more for the property.”

She also highlighted the importance of serviceability. “You still need to afford the loan,” she said. “If you’re borrowing 95 per cent of $1.5 million, that’s $1.425 million. You need a solid income to support that.”

Eligibility and Conditions

The scheme is open to anyone who has never owned a home, regardless of age. “I spoke to a 63-year-old woman this week who’s applying,” Hart said. “It’s not just for young people.”

There are additional benefits for buyers in New South Wales. “If you’re purchasing a home under $800,000, you may be eligible for stamp duty exemptions,” Hart explained. “Between $800,000 and $1 million, the exemptions phase out. But combined with the deposit scheme, it’s a powerful incentive.”

However, there are conditions. “You must live in the property until you reach 20 per cent equity,” Hart said. “You can’t rent it out or renovate extensively. It’s designed to support genuine home ownership, not speculation.”

The Process: From Inquiry to Settlement

Hart outlined the process for prospective buyers. “The first step is a simple chat,” she said “If we decide to proceed to the next stage after this, I’ll ask for documentation: payslips, tax returns, business records. The devil is in the detail.”

Once the paperwork is reviewed, Hart provides preliminary answers and, if appropriate, submits the application for preapproval. “There are two types: approval in principle and fully assessed,” she explained. “With preapproval, you know how much you can borrow and can confidently make offers.”

Hart and her team support clients through every stage—from property search to settlement. “We check postcodes, property sizes, and work with your conveyancer. It’s a rollercoaster, but we’re there every step of the way.”

Even better, you pay nothing for any of this advice—whichever bank we select that is best for you pays a commission to us after settlement of the loan.

Supporting Small Business Owners

Hart has a particular passion for helping self-employed clients. “Banks often struggle with business returns,” she said. “But as a business owner myself, I understand the challenges. We work hard to present a clear case to lenders.”

The expanded First Home Buyer Guarantee scheme represents a significant shift in housing policy, offering real opportunities for Australians previously locked out of the market. But as Hart emphasises, it’s not a one-size-fits-all solution.

“The best time to buy a home is when you can afford it,” she said. “This scheme helps some people do that sooner. But it’s essential to look at your whole situation—your deposit, your income, your goals. And don’t take on more debt than you can handle.”

For those ready to take the leap, the scheme offers a pathway to home ownership that was previously out of reach and with professionals like Reggie Hart guiding the way, many first-time buyers may find that the dream of owning a home is closer than they thought.

 

Thunderbolt Lending: www.thunderboltlending.com.au

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DISCLAIMER: This article is based on content presented by Phillips Wealth Partners Pty Ltd (ABN 74624858420), trading as Phillips Wealth Partners. Craig Phillips is an Authorised Representative (No. 334567) of Fintegrity Wealth Advisers Pty Ltd (ABN 89653321487 AFSL 534971). The information provided is general in nature and does not constitute specific aged care, taxation, superannuation, retirement investment or social security advice. It is based on current laws, rulings, and interpretations as at the date of publication. Readers should seek personalised advice before making financial decisions.